Curis' stock rockets on heavy volume after $135.7 million deal to sell portion of Erivedge royalties

Shares of Curis Inc. rocketed 93% in very active premarket trade Monday, after the biotechnology company said it reached an agreement to sell a portion of royalties of its Erivedge cancer treatment for up to $135.7 million to funds managed by Oberland Capital Management LLC. Volume swelled to 1.8 million shares ahead of the open, compared with the full-day average of about 174,000 shares. Under terms of the deal, Curis received $65 million upfront, and is entitled to receive up to an additional $70.7 million in milestone payments if future royalties exceed pre-determined thresholds. In comparison, the company reported a third-quarter net loss of $7.22 million and revenue of $2.85 million. "We believe this structure provides Curis with substantial non-dilutive capital today, while retaining significant participation in the future upside potential of Erivedge," Curis Chief Executive James Dentzer said. "The proceeds of this transaction further strengthen our cash position as we fund our three lead therapeutic candidates to reach their near term development catalysts and beyond." Thes tock has tumbled 60% over the past 12 months through Friday, while the iShares Biotechnology ETF has tacked on 2.7% and the S&P 500 has gained 8.2%.